The Fair Work Ombudsman has commenced legal action against a home construction contract company in Melbourne and its director.
Facing court are Local Builders Direct Pty Ltd and the company’s sole director and shareholder, Angelo Adamo.
The company has an office in Ravenhall and a display home centre on a site in Diggers Rest.
The regulator began an investigation after receiving a request for assistance from a worker who had been employed by Local Builders Direct as a sales consultant between November 2020 and May 2021.
A Fair Work Inspector issued a Compliance Notice to Local Builders Direct in July 2021 after forming a belief that the worker had been underpaid minimum wages and payment in lieu of notice, as well as personal and annual leave entitlements under the Miscellaneous Award 2020 and the National Employment Standards.
It is alleged that Local Builders Direct responded by back-paying the worker a total of $796.70 but that more than $500 remains owing.
The Fair Work Ombudsman alleges Local Builders Direct, without reasonable excuse, failed to fully comply with the Compliance Notice, which required it to calculate and back-pay the worker’s entitlements in full. It is alleged Mr Adamo was involved in the contravention.
Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take business operators to court when they fail to act on Compliance Notices.
“Where employers do not comply, we are prepared to take appropriate legal action to ensure employees receive their lawful entitlements. A court can order a business to pay penalties on top of having to back-pay workers,” Ms Parker said.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance.”
The FWO is seeking penalties. Local Builders Direct faces a maximum penalty of up to $33,300 and Mr Adamo faces a penalty of up to $6,660 for allegedly failing to comply with the Compliance Notice.
The regulator is also seeking an order for the company to comply with the Compliance Notice, which includes rectifying the alleged underpayments in full, plus superannuation and interest.
A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 2 June 2022.
